Savings & Investments

Toshpow

Hello I hope someone can come to my rescue, I have received from my pension a lump sum of £49,908 and a monthly income of £611 which I don't need to use for the next say 5 years or so. I don't want to tie it down to tightly as I may need to get at it at relativley short notice. I hope this makes some kind of sense. Many Thanks

Jake'sGran

Some fixed rates allow four withdrawals in one year but I cannot remember who that was. You may find it at the beginning of the savings section in Martins list of good accounts. Incidentally, this is a good place to look. Or have a look at Moneyfacts website which gives a good list of what is available.

Or, if you would be happy with 3% you can get this with instant access from EGG but the bonus included in this rate only lasts for one year. Chelsea Building Society have a bond paying 4.4% for two years. This is a good rate but there can be no withdrawals. Tesco are doing 3%with instant access (I cant remember the bank behind it but someone will know).

atypical

Jake'sGran wrote: »

Some fixed rates allow four withdrawals in one year but I cannot remember who that was.

The account you're referring to is most probably Halifax's Guaranteed Saver Reward at 2.40% fixed for a year.

Jake'sGran wrote: »

Tesco are doing 3%with instant access (I cant remember the bank behind it but someone will know).

RBS owned 50% but Tesco bought this off them so it is now solely owned by Tesco.

Primrose

Another option if you can tie up more than £25,000 with 3 months notice is to look at the Investec High 5 account which pays the average interest of the top 5 instant access accounts. It doesn't pay as much as other fixed rate bonds but will save you the hassle of of continually moving money around as your bonds mature and trying to find a new home for them. Incidentally, have you used up your Cash ISA allowances for this year if you're Over 50? Any maybe you will want to keep £5100 in instance access so you can use up next year's allowance as well from April 5th 2010.